Savi Financial Corporation Reports Second Quarter 2024 Results
Savi Financial (OTC Pink: SVVB) reported a net loss of $5,000 for Q2 2024, compared to a net loss of $416,000 in Q1 2024 and net income of $561,000 in Q2 2023. The company's net interest margin expanded to 3.48%, surpassing the peer average of 3.14%. Despite challenges, Savi Financial saw strong loan growth of 3% from the previous quarter and 10% year-over-year. Total deposits increased by 1% to $492.1 million. The company announced a merger with Harborstone Credit Union, expected to close in Q1 2025. SaviBank maintained strong capital levels with a tier-1 leverage ratio of 8.27% at quarter-end.
Savi Financial (OTC Pink: SVVB) ha riportato una perdita netta di $5.000 per il secondo trimestre del 2024, rispetto a una perdita netta di $416.000 nel primo trimestre del 2024 e un utile netto di $561.000 nel secondo trimestre del 2023. Il margine di interesse netto dell'azienda è aumentato al 3,48%, superando la media del settore del 3,14%. Nonostante le sfide, Savi Financial ha registrato una crescita forte dei prestiti del 3% rispetto al trimestre precedente e del 10% rispetto all'anno precedente. I depositi totali sono aumentati dell'1% a $492,1 milioni. L'azienda ha annunciato una fusione con Harborstone Credit Union, prevista per chiudere nel primo trimestre del 2025. SaviBank ha mantenuto livelli di capitale solidi con un rapporto di leva tier-1 del 8,27% alla fine del trimestre.
Savi Financial (OTC Pink: SVVB) reportó una pérdida neta de $5,000 para el segundo trimestre de 2024, en comparación con una pérdida neta de $416,000 en el primer trimestre de 2024 y un ingreso neto de $561,000 en el segundo trimestre de 2023. El margen de interés neto de la compañía se expandió al 3.48%, superando el promedio del sector del 3.14%. A pesar de los desafíos, Savi Financial experimentó un fuerte crecimiento de préstamos del 3% respecto al trimestre anterior y del 10% interanual. Los depósitos totales aumentaron un 1% a $492.1 millones. La empresa anunció una fusión con Harborstone Credit Union, que se espera que se cierre en el primer trimestre de 2025. SaviBank mantuvo niveles de capital sólidos con un ratio de apalancamiento tier-1 del 8.27% al final del trimestre.
Savi Financial (OTC Pink: SVVB)는 2024년 2분기에 5,000달러의 순손실을 기록했으며, 이는 2024년 1분기의 416,000달러 순손실 및 2023년 2분기의 561,000달러 순이익과 비교됩니다. 회사의 순이자마진은 3.48%로 확대되어 동종 업계 평균인 3.14%를 초과하였습니다. 어려움에도 불구하고 Savi Financial은 전 분기 대비 3%, 전년 대비 10%의 강력한 대출 성장을 보았습니다. 총 예금은 1% 증가하여 4억 9,210만 달러에 달했습니다. 회사는 2025년 1분기에 완료될 예정인 Harborstone Credit Union과의 합병을 발표했습니다. SaviBank는 분기 말 기준으로 8.27%의 1급 레버리지 비율로 강력한 자본 수준을 유지했습니다.
Savi Financial (OTC Pink: SVVB) a signalé une perte nette de 5 000 $ pour le deuxième trimestre de 2024, par rapport à une perte nette de 416 000 $ au premier trimestre de 2024 et un bénéfice net de 561 000 $ au deuxième trimestre de 2023. La marge d'intérêt nette de l'entreprise a augmenté à 3,48%, dépassant la moyenne du secteur de 3,14%. Malgré les défis, Savi Financial a connu une forte croissance des prêts de 3% par rapport au trimestre précédent et de 10% d'une année sur l'autre. Les dépôts totaux ont augmenté de 1% pour atteindre 492,1 millions $. L'entreprise a annoncé une fusion avec Harborstone Credit Union, prévue pour être finalisée au premier trimestre de 2025. SaviBank a maintenu des niveaux de capital solides avec un ratio d'endettement de premier niveau de 8,27% à la fin du trimestre.
Savi Financial (OTC Pink: SVVB) meldete einen Nettoverlust von 5.000 $ für das 2. Quartal 2024, verglichen mit einem Nettoverlust von 416.000 $ im 1. Quartal 2024 und einem Nettogewinn von 561.000 $ im 2. Quartal 2023. Die Nettozinsmarge des Unternehmens erweiterte sich auf 3,48%, was über dem Branchendurchschnitt von 3,14% liegt. Trotz der Herausforderungen verzeichnete Savi Financial ein starkes Kreditwachstum von 3% gegenüber dem vorangegangenen Quartal und 10% im Jahresvergleich. Die gesamten Einlagen stiegen um 1% auf 492,1 Millionen $. Das Unternehmen kündigte eine Fusion mit der Harborstone Credit Union an, die im 1. Quartal 2025 abgeschlossen werden soll. SaviBank hielt ein starkes Kapitalniveau mit einem Tier-1-Leverage-Verhältnis von 8,27% zum Quartalsende.
- Net interest margin expanded to 3.48%, surpassing peer average of 3.14%
- Loan growth of 3% quarter-over-quarter and 10% year-over-year
- Total deposits increased by 1% to $492.1 million
- Strong tier-1 leverage ratio of 8.27%, above well-capitalized threshold
- Announced merger with Harborstone Credit Union, potentially maximizing shareholder value
- Reported net loss of $5,000 in Q2 2024
- Year-to-date net loss of $421,000 compared to net income of $1.03 million in H1 2023
- Increased provision for credit losses to $255,000 in Q2 2024
- Non-interest expenses increased to $5.82 million in Q2 2024
- Nonperforming loans increased to 0.24% of total loans, up from 0.02% a year ago
MOUNT VERNON, Wash., July 30, 2024 (GLOBE NEWSWIRE) -- Savi Financial Corporation, Inc. (OTC Pink: SVVB), the bank holding company for SaviBank, today announced a net loss of
“Our second quarter results reflected strong loan and deposit growth and net interest margin expansion. While we generated an increase in net interest income and non-interest income compared to the preceding quarter, our net income was impacted by a larger provision for loan losses due to strong loan growth as well as higher noninterest expenses,” said Michal D. Cann, Chairman and President of Savi Financial Corporation. “We are encouraged by our strong pipeline of SBA loans and anticipate an improvement in our non-interest income in future quarters. Further, we continue to have access to funds at the holding company which can be used to maintain strong capital ratios, and our credit quality remains strong.”
“Loan growth continues to be solid, increasing
“The increase in loan yields during the quarter, as well as a decrease in funding costs, contributed to net interest margin (NIM) expansion of eight basis points during the current quarter,” said Rob Woods, Chief Financial Officer of SaviBank. “We anticipate funding costs will continue to stabilize over the next few quarters.” The Company’s NIM was
Merger
On March 22, 2024, the Company announced that it had signed a Purchase and Assumption agreement whereby Lakewood, WA. based Harborstone Credit Union will acquire SaviBank in an all-cash transaction. The transaction is structured as a purchase agreement with Harborstone Credit Union purchasing substantially all assets and assuming substantially all liabilities of SaviBank. The transaction is anticipated to be completed in the first quarter of 2025, subject to receiving all regulatory approvals, approval by the stockholders of Savi Financial, and other customary closing conditions.
“We look forward to working with Harborstone Credit Union to continue our tradition of fostering meaningful customer relationships while having a positive impact in our local communities,” said Cann. “We are deeply focused on providing resources and services for our customers to succeed, and believe that the additional services, products and locations Harborstone Credit Union provides will help us continue to meet the financial needs of our customers. Through the unique structure of this acquisition by Harborstone Credit Union, we believe we are maximizing value to our shareholders who have supported us over the years.”
Second Quarter 2024 Highlights:
- The Company reported a net loss of
$5,000 for the second quarter of 2024, compared to net loss of$416,000 for the first quarter of 2024, and net income of$561,000 for the second quarter of 2023. - Losses per diluted share were
$0.00 in the second quarter of 2024, compared to losses per diluted share of$0.09 in the preceding quarter, and earnings per diluted share of$0.13 in the second quarter of 2023. - Net interest income was
$4.86 million in the second quarter of 2024, compared to$4.63 million in the first quarter of 2024, and$4.85 million in the second quarter of 2023. - Total revenue, consisting of net interest income and non-interest income, increased
16% to$6.04 million in the second quarter of 2024, compared to$5.21 million in the preceding quarter and increased4% compared to$5.82 million in the second quarter a year ago. - Non-interest expense was
$5.82 million in the second quarter of 2024, compared to$5.53 million in the preceding quarter, and$5.33 million in the second quarter a year ago. - Average second quarter 2024 total loans increased
2% to$503.8 million , compared to$491.1 million in the first quarter of 2024, and increased9% from$461.1 million in the second quarter of 2023. Total loans at June 30, 2024, increased3% to$512.1 million from$497.3 million at March 31, 2024, and increased10% compared to$467.6 million at June 30, 2023. - SBA and USDA loan production for the twelve months ended June 30, 2024, totaled 10 loans for
$6.64 million , compared to production of 24 loans for$23.65 million in the year-ago period. - Average second quarter 2024 total deposits grew
1% to$490.8 million , from$486.6million in the preceding quarter, and increased5% from$467.1 million in the second quarter of a year ago. Total deposits increased1% to$492.1 million , at June 30, 2024, compared to$489.4 million at March 31, 2024, and increased5% compared to$466.7 million at June 30, 2023. - The Company recorded a
$255,000 provision for credit losses in the second quarter of 2024, compared to a$237,000 provision in the first quarter of 2024, and a$189,000 credit to the provision in the second quarter of 2023. - Allowance for loan losses, as a percentage of total loans, was
1.19% at June 30, 2024, compared to1.17% at March 31, 2024, and at June 30, 2023. - Nonperforming loans, as a percentage of total loans, was
0.24% at June 30, 2024, compared to0.35% at March 31, 2024, and0.02% at June 30, 2023. - Nonperforming assets, as a percentage of total assets, was
0.20% at June 30, 2024, compared to0.40% at March 31, 2024, and0.13% a year ago. - Net charge-offs were
$35,000 in the second quarter of 2024, compared to$173,000 in the first quarter of 2024, and$107,000 in the second quarter a year ago. - SaviBank capital levels remained above the threshold for well-capitalized institutions with a tier-1 leverage ratio of
8.27% at June 30, 2024.
About Northwest Washington
SaviBank currently operates six branches in Skagit County, two branches in Island County, one branch in Whatcom County and one branch in San Juan County. The Skagit, Whatcom, Island and San Juan counties region stretches north from the greater Seattle/Everett/Bellevue metropolis to the Canadian border.
The housing market in Skagit, Island, Whatcom and San Juan counties remains healthy, although it has fallen off the record high levels from the past few years. According to the Northwest Multiple Listing Service, the average home in Skagit County sold for
Skagit’s population is projected to grow
Sources:
https://www.nwmls.com/real-estate-news/monthly-market-snapshot/
https://www.capitaliq.spglobal.com/
About Savi Financial Corporation Inc. and SaviBank
Savi Financial Corporation is the bank holding company which owns SaviBank. The Bank began operations April 11, 2005, and has 10 branch locations in Anacortes, Burlington, Bellingham, Concrete, Mount Vernon (2), Oak Harbor, Freeland, Sedro-Woolley, and Friday Harbor, Washington. The Bank provides loan and deposit services to customers who are predominantly small and middle-market businesses and individuals in and around Skagit, Island, Whatcom and San Juan counties. As a locally-owned community bank, we believe that when everyone becomes Savi about their finances, our entire community benefits. For additional information about SaviBank, visit: www.SaviBank.com.
About Harborstone Credit Union
Harborstone Credit Union is a Washington-chartered and federally insured credit union headquartered in Lakewood, Washington. Founded in 1955 as McChord Federal Credit Union, serving airmen on McChord Air Force Base (now Joint Base Lewis McChord), Harborstone Credit Union has grown to become one of the largest credit unions in Washington State with over 90,000 members and approximately
Forward Looking Statements
Certain statements in this news release contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to future plans and expectations, and are thus prospective. Such forward-looking statements are subject to risks, uncertainties, and other factors, such as the businesses of Harborstone Credit Union and SaviBank may not be integrated successfully or such integration may take longer to accomplish than expected, the expected cost savings and any revenue synergies from the acquisition may not be fully realized within the expected timeframes, disruption from the acquisition may make it more difficult to maintain relationships with customers, associates, or suppliers, the required governmental approvals of the acquisition may not be obtained on the proposed terms and schedule, or Savi Financial shareholders may not approve the acquisition, any of which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in the forward-looking statements will be realized. The inclusion of this forward-looking information should not be construed as a representation by the companies or any person that the future events, plans, or expectations contemplated by the companies will be achieved. All subsequent written and oral forward-looking statements concerning the companies or any person acting on their behalf is expressly qualified in its entirety by the cautionary statements above. None of Harborstone Credit Union, Savi Financial or SaviBank undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, to reflect circumstances or events that occur after the date the forward-looking statements are made.
| SELECTED FINANCIAL DATA | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (In thousands of dollars, except for ratios and per share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2024 | June 30, 2023 | Var % | March 31, 2024 | Var % | June 30, 2024 | June 30, 2023 | Var % | |||||||||||||||||||||||||||||||||||||||||||
| SUMMARY OF OPERATIONS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest income | $ | 8,371 | $ | 6,946 | $ | 7,835 | 7 | % | $ | 16,206 | $ | 13,519 | 20 | % | ||||||||||||||||||||||||||||||||||||
| Interest expense | (3,509 | ) | (2,097 | ) | 67 | (3,204 | ) | 10 | (6,713 | ) | (3,553 | ) | 89 | |||||||||||||||||||||||||||||||||||||
| Net interest income | 4,862 | 4,849 | 0 | 4,631 | 5 | 9,493 | 9,966 | (5 | ) | |||||||||||||||||||||||||||||||||||||||||
| Provision for loan losses | (255 | ) | 189 | (235) | (237 | ) | 8 | (492 | ) | 189 | (360 | ) | ||||||||||||||||||||||||||||||||||||||
| NII after loss provision | 4,607 | 5,038 | (9) | 4,394 | 5 | 9,001 | 10,155 | (11 | ) | |||||||||||||||||||||||||||||||||||||||||
| Non-interest income | 1,181 | 970 | 22 | 581 | 103 | 1,762 | 1,944 | (9 | ) | |||||||||||||||||||||||||||||||||||||||||
| Non-interest expense | (5,823 | ) | (5,327 | ) | 9 | (5,531 | ) | 5 | (11,354 | ) | (10,856 | ) | 5 | |||||||||||||||||||||||||||||||||||||
| Income before tax | (35 | ) | 681 | (105) | (556 | ) | (94) | (591 | ) | 1,243 | (148 | ) | ||||||||||||||||||||||||||||||||||||||
| Federal income tax expense | (30 | ) | 120 | (125) | (140 | ) | (79) | (170 | ) | 214 | (179 | ) | ||||||||||||||||||||||||||||||||||||||
| Net income | $ | (5 | ) | $ | 561 | (101 | )% | $ | (416 | ) | (99 | )% | $ | (421 | ) | $ | 1,029 | (141 | )% | |||||||||||||||||||||||||||||||
| PER COMMON SHARE DATA | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Number of shares outstanding (000s) | 3,465 | 3,459 | 0 | % | 3,465 | —% | 3,465 | 3,459 | 0.17 | % | ||||||||||||||||||||||||||||||||||||||||
| Earnings per share, basic | $ | (0.00 | ) | $ | 0.16 | (101) | $ | (0.12 | ) | (99) | $ | (0.12 | ) | $ | 0.30 | (141 | ) | |||||||||||||||||||||||||||||||||
| Earnings per share, diluted | $ | (0.00 | ) | $ | 0.13 | (101) | $ | (0.09 | ) | (99) | $ | (0.10 | ) | $ | 0.23 | (141 | ) | |||||||||||||||||||||||||||||||||
| Market value | 14.79 | 6.90 | 114 | 14.60 | 1 | 14.79 | 6.90 | 114 | ||||||||||||||||||||||||||||||||||||||||||
| Book value | 10.61 | 10.91 | (3) | 10.56 | 1 | 10.61 | 10.91 | (3 | ) | |||||||||||||||||||||||||||||||||||||||||
| Market value to book value | 139.35 | % | 63.25 | % | 120 | 138.30 | % | 1 | 139.35 | % | 63.25 | % | 120 | |||||||||||||||||||||||||||||||||||||
| BALANCE SHEET DATA | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Assets | $ | 621,191 | $ | 576,458 | $ | 603,333 | 3 | % | $ | 621,191 | $ | 576,458 | 8 | % | ||||||||||||||||||||||||||||||||||||
| Investments securities | 34,698 | 36,074 | (4) | 36,548 | (5) | 34,698 | 36,074 | (4 | ) | |||||||||||||||||||||||||||||||||||||||||
| Total loans | 512,080 | 467,624 | 10 | 497,290 | 3 | 512,080 | 467,624 | 10 | ||||||||||||||||||||||||||||||||||||||||||
| Total deposits | 492,140 | 466,675 | 5 | 489,366 | 1 | 492,140 | 466,675 | 5 | ||||||||||||||||||||||||||||||||||||||||||
| Borrowings | 72,000 | 52,500 | 37 | 57,500 | 25 | 72,000 | 52,500 | 37 | ||||||||||||||||||||||||||||||||||||||||||
| Sub Debt - Savi Financial Only | 17,000 | 17,000 | - | 17,000 | - | 17,000 | 17,000 | - | ||||||||||||||||||||||||||||||||||||||||||
| Shareholders’ equity | 36,777 | 37,737 | (3) | 36,579 | 1 | 36,777 | 37,737 | (3 | ) | |||||||||||||||||||||||||||||||||||||||||
| AVERAGE BALANCE SHEET DATA | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Average assets | $ | 612,262 | $ | 569,891 | 7 | % | $ | 598,407 | 2 | % | $ | 607,336 | $ | 549,987 | 10 | % | ||||||||||||||||||||||||||||||||||
| Average total loans | 503,793 | 461,062 | 9 | 491,928 | 2 | 498,760 | 452,738 | 10 | ||||||||||||||||||||||||||||||||||||||||||
| Average total deposits | 490,753 | 467,091 | 5 | 486,600 | 1 | 487,987 | 448,692 | 9 | ||||||||||||||||||||||||||||||||||||||||||
| Average shareholders' equity | 36,678 | 37,590 | (2) | 36,883 | (1) | 36,982 | 37,007 | (0 | ) | |||||||||||||||||||||||||||||||||||||||||
| ASSET QUALITY RATIOS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net (charge-offs) recoveries | $ | (35 | ) | $ | (107 | ) | N/M | $ | (173 | ) | N/M | $ | (208 | ) | $ | (189 | ) | N/M | ||||||||||||||||||||||||||||||||
| Net (charge-offs) recoveries to average loans | (0.03 | )% | (0.09 | )% | N/M | (0.14 | )% | N/M | (0.08 | )% | (0.08 | )% | N/M | |||||||||||||||||||||||||||||||||||||
| Non-performing loans as a % of loans | 0.24 | 0.02 | 1,105 | 0.35 | (31) | 0.24 | 0.02 | 1,105 | ||||||||||||||||||||||||||||||||||||||||||
| Non-performing assets as a % of assets | 0.20 | 0.13 | 53 | 0.40 | (50) | 0.20 | 0.13 | 53 | ||||||||||||||||||||||||||||||||||||||||||
| Allowance for loan losses as a % of total loans | 1.19 | 1.17 | 1 | 1.17 | 1 | 1.19 | 1.17 | 1 | ||||||||||||||||||||||||||||||||||||||||||
| Allowance for loan losses as a % of non-performing loans | 492.30 | 6,412.94 | (92) | 333.12 | 48 | 492.30 | 6,412.94 | (92 | ) | |||||||||||||||||||||||||||||||||||||||||
| FINANCIAL RATIOS\STATISTICS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Return on average equity | -0.05 | % | 5.97 | % | (101) | % | -4.51 | % | (99 | )% | -2.28 | % | 5.56 | % | (141 | )% | ||||||||||||||||||||||||||||||||||
| Return on average assets | (0.00 | ) | 0.39 | (101) | (0.28 | ) | (99) | (0.14 | ) | 0.37 | (137 | ) | ||||||||||||||||||||||||||||||||||||||
| Net interest margin | 3.48 | 3.66 | (5) | 3.40 | 2 | 3.46 | 3.85 | (10 | ) | |||||||||||||||||||||||||||||||||||||||||
| Efficiency ratio | 83.37 | 91.51 | (9) | 106.12 | (21) | 87.59 | 91.41 | (4 | ) | |||||||||||||||||||||||||||||||||||||||||
| Average number of employees (FTE) | 140 | 149 | (6) | 146 | (4) | 140 | 147 | (5 | ) | |||||||||||||||||||||||||||||||||||||||||
| CAPITAL RATIOS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Tier 1 leverage ratio -- Bank | 8.27 | 8.32 | (1) | % | 8.06 | 8.27 | 8.32 | (1 | )% | |||||||||||||||||||||||||||||||||||||||||
| Common equity tier 1 ratio -- Bank | 9.36 | 8.92 | 5 | 8.93 | 5 | 9.36 | 8.92 | 5 | ||||||||||||||||||||||||||||||||||||||||||
| Tier 1 risk-based capital ratio -- Bank | 9.36 | 8.92 | 5 | 8.93 | 5 | 9.36 | 8.92 | 5 | ||||||||||||||||||||||||||||||||||||||||||
| Total risk-based capital ratio --Bank | 10.56 | 10.14 | 4 | 10.10 | 5 | 10.56 | 10.14 | 4 | ||||||||||||||||||||||||||||||||||||||||||
FAQ
What was Savi Financial 's (SVVB) net income for Q2 2024?
How did SVVB's loan growth perform in Q2 2024?
What was Savi Financial 's (SVVB) net interest margin in Q2 2024?
Has Savi Financial (SVVB) announced any merger plans?
What was SVVB's tier-1 leverage ratio as of June 30, 2024?
